Stocks close lower after a banner week

Apr. 15, 2013
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Traders work on the floor of the New York Stock Exchange on January 2, 2013 in New York City. A day after U.S. lawmakers reached a last minute agreement to avert the fiscal cliff, U.S. stocks surged as traders around the globe felt renewed confidence over global markets. Shortly after the opening bell, The Dow Jones Industrial Average rallied more than 230 points, or 1.7%. (Photo by Spencer Platt/Getty Images) *** BESTPIX *** ORG XMIT: 158469897 ORIG FILE ID: 158870642 / Spencer Platt Getty Images

by Beth Belton, USA TODAY

by Beth Belton, USA TODAY

Stocks closed modestly lower Friday as investors turned cautious after two straight days of record closing highs for benchmark indexes. The price of gold plunged 5% an ounce to $1,487 an ounce.

The Dow Jones industrial average ended flat at 14,855.06. The Standard & Poor's 500 index was down 4.52 points, 0.3%, to 1,588.85, and the Nasdaq composite index was down 5.21 points, 0.2%, to 3,294.95. The yield on the 10-year U.S. Treasury note finished at 1.72% from 1.79% Thursday.

Analysts blamed gold's surprising plunge and massive volume in trading of the precious metal on investors who fear gold won't be the safe haven it has been when inflation spikes, the economy deteriorates or the sale of gold to raise cash skyrockets. As recently as mid-September, gold prices were flying above $1,800 an ounce.

There are worries businesses and consumers in the debt-laden eurozone are beginning to ratchet up gold sales as the beleaguered banking sector in Cyprus worsens.

Even so, it was a banner week for stocks. Benchmark indexes rose the past four consecutive days and the Dow and S&P notched new record closing highs Wednesday and Thursday.

On Thursday, the Dow ended up 0.4% to 14,865.14. The S&P 500 index finished 0.4% higher to 1,593.37. The Nasdaq composite gained less than 0.1% to close at 3,300.16.

What drove pessimism Friday: A government economic report that showed retail sales tumbled in March, reflecting weaker consumer spending. A second report from a monthly survey by Thomson Reuters/University of Michigan said consumer sentiment plunged in April to its lowest level in nine months.

Late Thursday, the Wall Street reported that J.C. Penney is bleeding cash and looking to raise $1 billion to stem the hemorrhaging. In afternoon trading Friday, J.C. Penney shares ended down 1.8% to $14.60 a share, rebounding from a drop of more than 3% earlier in the day.

Cyprus may ask the European Union for additional financial assistance, the country's president is reported to have said, according to Agence France-Presse and other media outlets. This would come on top of an earlier $13 billion bailout.